In mid-October the Financial Conduct Authority and Bank of England held the first joint meeting of the Artificial Intelligence Public-Private Forum, with the aim of exploring “means to support safe adoption of these technologies within financial services, and whether principles, guidance, regulation and/or industry good practice could support this adoption.”
In a blog post, Shoosmiths partner Sam Tyfield noted that:
- Although the members did not reach a consensus that an AI-specific overlay or framework was required for financial services generally and, one assumes, market abuse in particular, there was “broad agreement that risk management frameworks need to be proportionate to the complexity of the AI models and the business applications” to which they are applied.
- Proportionality based on complexity of models and business application.
So, for a majority of the applications of AI in financial services, that would mean quite an extensive risk management framework, no matter how commoditized people believe some AI tools to have become.